ASX Announces 38% Decrease in Annual Profit

by Warren Seah

The Australian Securities Exchange (ASX) has reported a 38% decline in its annual profit, citing the impact of significant items, including those related to its Clearing House Electronic Subregister System. Despite this, ASX remains the country’s dominant securities exchange.

Financial Performance

ASX’s net profit for the 12 months ending June reached AUD 317.3 million (USD 203.8 million), compared to AUD 508.5 million in the previous year. The company’s operating revenue also declined by 1.2% to AUD 1.01 billion. While listings revenue experienced growth, weaker equity trading and securities and payments activity offset the overall revenue.

Chief Executive’s Comments

Helen Lofthouse, the Chief Executive of ASX, acknowledged the challenging economic environment in which the company operates. She highlighted that despite the fastest tightening monetary cycles on record, geopolitical tensions, and lower equity trading volumes, ASX has demonstrated resilience and achieved a robust underlying financial result. Lofthouse emphasized the strength of ASX’s diversified business model, as evidenced by two consecutive years of operating revenue surpassing AUD 1 billion.

Dividend Announcement

The Board of Directors at ASX declared an interim dividend of 112.1 Australian cents per share, a slight decrease from last year’s 120 Australian cents per share.

Future Outlook

ASX reiterated its guidance provided in June during its Investor Day. The company expects total expense growth of 12-15% for FY 2024, but an ongoing review of its operating expenses is anticipated to lower this figure for FY 2025.

For more information, please contact ASX directly.

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